Sharia-compliant savings

Sharia-compliant accounts provide the same day-to-day banking services as mainstream current accounts. However, they don’t give you a return on your money or offer overdraft facilities as the principle of paying or charging interest is against Islamic law. Any money invested will be kept separate from other bank accounts – it won’t be used to generate interest or be invested in prohibited businesses.

When might a Sharia-compliant account be for you?

You want your savings to grow through Sharia-compliant profits, not through interest.

You don’t want your bank to lend your money to businesses that provide goods or services – such as alcohol, tobacco and gambling – that are against Islamic principles.

How Sharia compliant savings work

With a Sharia-compliant savings account, instead of lending out your savings and charging interest then passing some of this on to you, the bank uses your money in a way that’s consistent with Islamic beliefs.

Your bank will follow the advice of a panel of Muslim bank advisers to make sure that profit-generating activities are Sharia-compliant.

Some of the profit the bank earns from these activities is returned to you, allowing you to grow your savings without earning interest.